EANS-Adhoc: CHRIST WATER TECHNOLOGY AG / CHRIST completes FY 2008 clean-up of `poison projects´ and restructuring and takes strategic decisions

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Company Information

17.04.2009

• Sales +10% to EUR 307.0 million (EUR 278.2 million)
• Order intake EUR 230.3 million (-29%)
• EBIT EUR -18.4 million (EUR +6.0 million)
• Operating cash flow EUR +1.6 million (EUR -15.6 million)
• CHRIST in front of strategic alliance for Food & Beverage

"The year 2008 turned out to be a challenging year for the CHRIST
Group and was closed with an unexpected high net loss. A clear focus
on profitability and cashflow as well as a reduction of risk and
complexity meant a new orientation following the precedent time of
growth and acquisitions, " says Malek Salamor, CEO of the Christ
Water Technology Group.

Based on the high order backlog and the consolidation of the Zeta
Group, net sales grew by 10% to EUR 307.0 million in 2008 (2007: EUR
278.2 million).

Order intake of EUR 230.3 million was down by 29% compared to a
record year 2007 due to a large desalination order booked. The
first-time inclusion of the bio-pharma activities of the new
subsidiary Zeta pushed up Pharma orders by 90% while the deliberate
withdrawal in turnkey power projects reduced volume in the Ultrapure
Water division. The order backlog amounted to EUR 151.8 million as of
December 31st, 2008.

Earnings before interest, taxes and depreciation/amortisation
(EBITDA) was negative at EUR -7.2 million after EUR +9.7 million last
year. The completion of a number of turnkey power projects sold at
fixed prices in the past as well as negative or inactive projects in
the Food & Beverage Division led to excessive losses due to lengthy
execution schedules and cost overruns in material and third party
cost. The negative impact of such `poison projects´ on the EBIT
summed up to EUR 16.5 million in 2008.

The transformation process of the Group required the closing or
down-sizing of non profitable companies and termination of businesses
activities with extra cost of EUR 4.1 million. The increase of
depreciations from the previous year´s EUR 3.7 million to EUR 11.2
million, included EUR 5 million write-offs via impairments of
goodwill mainly in Joint Ventures and intangible assets. Thus, EBIT
was at EUR -18.4 million after EUR +6.0 million in the year 2007.
Adjusting for the mentioned special effects of roughly EUR 24.6
million, - including other positive and negative one-time effects of
net EUR +1.0 million - a `normalized EBIT´ would have been EUR 6.2
million.

The net result of EUR -27.5 million (2007: EUR +1.7 million) was also
impacted by the write-off of deferred taxes of EUR 3.4 million
following the negative development in loss making and restructured
group companies.

A positive signal can be reported from the cash side. After years of
negative cashflow developments, operating cash flow could be turned
into positive at EUR +1.6 million (2007: EUR -15.6 million). Cash
flow from investing activities amounted to EUR -5.7 million (2007:
EUR -7.8 million) and included capital expenditures of EUR 5.0
million. Total financial liabilities of the CHRIST Group as at
December 31st, 2008 amounted to EUR 73.9 million, whereof EUR 50
million stem from a corporate bond with duration until 2013 and a
coupon of 5.25%. The net position including cash and cash equivalents
gave net debt of EUR 54.7 million (2007: EUR 42.2 million including
interest-bearing financial receivables).

Due to the net loss, equity was reduced as at December 31st, 2008 to
EUR 37.0 million (i.e. 16% equity ratio) after EUR 63.8 million or
27.7% the year before. Gearing as the ratio of net debt to equity
showed an increase from 66% to 148%. The major credit facilities were
renegotiated recently.

Outlook

"We have improved our flexibility and efficiency significantly during
the past months and successfully executed our transformation concept
which we started in September 2008. The number of employees has been
reduced by 15% and through continuously reducing complexity we saved
about EUR 10 million of cost. Our target is to return to
profitability despite the current economic slow-down," says Malek
Salamor, CEO of the Christ Water Technology Group. "To accelerate in
the process of refocusing the Group and to allow Van der Molen a
sustainable future development in the market of process technology
for the beverage industry, we have taken the decision to form an
alliance in the Food & Beverage division. In this context also two
Italian based companies were sold to local business partners with
effect January 1st, 2009. Besides good project activities in the
pharmaceutical industry, there are also positive signs in the public
or municipal infrastructure and utility projects including water
treatment and desalination projects. Headed by one of the biggest
water treatment orders ever placed in South Africa worth approx. EUR
60 million, we can report a solid order intake in Q1 2009 of almost
EUR 90 million (Q1 2008: EUR 69 million). Nevertheless, earnings
guidance for 2009 is currently very difficult as the health of the
global economy is still not clear. Based on the corrected negative
developments of the previous periods and the prevailing framework, we
expect an adequate decline of net sales. Due to the improved cost
structure and the cleaned project environment the basis for positive
net result is well prepared."

The Annual Report and Annual Financial Report 2008 will be available
as of April 30th, 2009 on the homepage www.christwater.com

end of announcement euro adhoc
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ots Originaltext: CHRIST WATER TECHNOLOGY AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Christ Water Technology AG

Mag. Ralf Burchert

ralf.burchert@christwater.com

Tel.: 06232/5011-1113

Branche: Biotechnology
ISIN: AT0000499157
WKN: 675399
Index: WBI, ATX Prime
Börsen: Wiener Börse AG / official market